Janet Yellen

I completely agree that an independent central bank in a democratic society needs to explain itself to the public and to Congress.

Current spending and taxation decisions will lead to an unsustainable debt situation with rising interest rates and declining investment in the United States that will further harm productivity, growth, and living standards.

The dual mandate has served the country well.

I would not get rid of it, but I would look for ways to simplify it.

I think there is scope there to have a favorable impact on long-term economic growth.

We would favor some increase, if Congress sticks with a dollar threshold.

My advice would be to focus on all of those factors that determine productivity growth, and that pertains to tax reform and the efficiency with which the economy operates.

I think it is something that could have a favorable impact if appropriately done.

Fiscal policy, we have long known, under current policy is on an unsustainable course.

You did say that you did not see a $1 trillion balance sheet again.

I believe risk-based capital should be the most important form of capital regulation, that that is what should be binding.

We are constantly looking for vulnerabilities and recognize that risk can move outside the regulatory perimeter.

I do believe our stress tests and CCAR have very substantially strengthened especially the largest banking firms.

Congress set forth the mandate for monetary policy in the Federal Reserve Act, which directs the Federal Reserve Board to conduct monetary policy so as to promote maximum employment and stable prices.

The implementation of it has been very complex and burdensome.

I cannot give you a definite timetable for our reconsideration of this, but it is something where perhaps our regulations had an unintended consequence, and we are looking at that carefully.

The behavior that we saw was egregious and unacceptable.

I do not have that number at my----

I believe it is essential to maintain orderly liquidation.

It appears that the recent lower readings on inflation are partly the result of a few unusual reductions in certain categories of prices.

I do believe it is an important mandate that keeps us focused on the labor market and wanting to ensure strong performance.

We are very focused on trying to bring inflation up to our 2-percent objective.

It is a risk. A significant amount of that is in China.

It is important when we have a 2-percent inflation objective to make sure that we achieve it.

Both objectives of the dual mandate are important in promoting the economic well-being of the United States.